Wow, GNW tanked a stunning 14% yesterday, going from $16.20 to $14.00 (Long Term-Care Policies Bite Genworth Again). I believe that is an incredible over-reaction. This is a company that is making money, 10 to 12x earnings and has a book value (excluding AOCI) of $24.31. I understand they have some problems with LTC, but this is a problem they acknowledged a few quarters ago and have been addressing. The fact of insurance is that it takes some time to file for rate increases and for them to then earn into premium. Investors can be so impatient, which I believe is an opportunity. I will likely add some shares today. It is a blue light special.
To make myself (and any followers who own GNW with me) feel better, I have posted a picture of where I am going in Switzerland today.
Should Have Held My LOCO
LOCO is now up 83% on the price I paid on Friday last week. Of course I sold them for a 10% gain. They were one of the cheaper and more interesting IPOs of late. So while they have gone up sharply, I do not think they are in nose bleed territory as some are suggesting. But I will not jump back in.
Mind The Gap
The joint drops of GNW and GTAT have shaved my lead over R3K down to a mere 68 basis points. I am glad that today is the last day of July, hopefully August will be better. Here is a week by week chart for 2014:
For those who prefer numbers, I was up 16.9% for the year and that has been whittled to 7.8%.
My MFI Stocks
These guys have been struggling as well. Investing is definitely not up, up, up all the time. I laugh a little bit about it as I am still ok with my stock holdings and I have a lot of cash. You cannot kill yourself when Mr Market goes nuts.
So I am still up nicely for the year (157,138 to 172,256), but July has been a bit rocky.
I may dip a toe in market today. Here is a listing of how all my stocks have fared in July:
Wow, that is an ugly table. I think GNW and NADL are two to look really hard at given current prices for me. GTAT and SYNA also seem pretty cheap.
One more picture of Murren